Century Bancorp, Inc. Reports Third Quarter Results and Declares Quarterly Dividend.

MEDFORD, Mass. -- Century Bancorp, Inc. (NASDAQ:CNBKA) (www.century-bank.com) ("the Company") today announced net income of $2,864,000, or $0.52 per share diluted, for the third quarter ended September 30, 2007, compared to net income of $1,197,000, or $0.22 per share diluted, for the third quarter ended September 30, 2006. Included in income for the third quarter of 2007 is the previously announced $1,321,000 pre-tax gain on the sale of the building which houses the Company's Medford Square branch. Included in income for the third quarter of 2006 was approximately $354,000 of Federal Home Loan Bank (FHLB) stock dividend income. This dividend was for the second and third quarter of 2006 because the FHLB did not declare a dividend in the second quarter of 2006. For the first nine months of 2007, net income totaled $5,491,000, or $0.99 per share diluted, compared to net income of $3,600,000, or $0.65 per share diluted, for the same period a year ago. Included in income for the nine months ended September 30, 2006 is a pre-tax gain of $600,000 from the sale of the Company's rights to future royalty payments for a portion of its Merchant Credit Card customer base.

Net interest income totaled $29.1 million for the first nine months of 2007 as compared to $27.8 million for the same period in 2006. The 4.8% increase in net interest income for the period is due to an increase of eighteen basis points in the net interest margin, from 2.43% on a fully taxable equivalent basis in 2006 to 2.61% on the same basis for 2007. Included in interest income for the nine months ended September 30, 2007 is $432,000 of prepayment fees collected on loans as compared to $95,000 for the comparable 2006 period, an increase of $337,000. Prepayment fees amounted to $14,000 and $10,000 for the three months ended September 30, 2007 and 2006, respectively.

At September 30, 2007, total equity was $114.2 million compared to $106.8 million at December 31, 2006. The Company's equity increased as a result of earnings less dividends paid as well as an improvement of $3.3 million in the net unrealized loss on the Company's available-for-sale portfolio. The Company's leverage ratio stood at 9.32% at September 30, 2007, compared to 8.78% at September 30, 2006. Book value as of September 30, 2007 was $20.60 per share compared to $19.37 at September 30, 2006.

The Company's allowance for loan losses was $9.6 million or 1.30% of loans outstanding at the end of the third quarter of 2007, compared to $9.7 million, or 1.32% of loans outstanding at December 31, 2006 and $9.8 million or 1.36% at September 30, 2006. Non-performing assets totaled $1.0 million at September 30, 2007, compared to $135,000 at December 31, 2006 and $296,000 at September 30, 2006.

The Company's Board of Directors voted a regular quarterly dividend of 12.00 cents ($0.12) per share on the Company's Class A common stock, and 6.00 cents ($0.06) per share on the Company's Class B common stock. The dividends were declared payable November 15, 2007 to stockholders of record on November 1, 2007.

The Company, through its subsidiary bank, Century Bank and Trust Company, a state chartered full service commercial bank, operating twenty-two full-service branches in the Greater Boston area, offers a full range of Business, Personal and Institutional Services.

Century Bank and Trust Company is a member of the FDIC and is an Equal Housing Lender.

This press release contains certain "forward-looking statements" with respect to the financial condition, results of operations and business of the Company. Actual results may differ from those contemplated by these statements. The Company wishes to caution readers not to place undue reliance on any forward-looking statements. The Company disclaims any intent or obligation to update publicly any such forward-looking statements, whether in response to new information, future events or otherwise.

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